Why is a home appraisal necessary?
You have bought a house. Then you still have to arrange the financing. And for a mortgage a valuation is needed. Strange, isn't it, because the value of the house was already determined? Why is it still necessary to have your house valued? We are happy to explain it to you.
Why have your home appraised?
Having your home appraised for financing may seem like a mere formality, but the opposite is true. If you want to obtain a mortgage for your home, a bank requires that the property be appraised. This is not only to determine the actual value of the home, but also to ascertain the condition of the house.
What determines the value of a house?
The valuation is therefore intended to check whether the value corresponds to the amount you bid. The value therefore depends on the location of the house, the state of maintenance and the marketability of the house. In which neighborhood is the house located, is it popular? And the specific characteristics of the house also play a role in the value. Just like the cubic meters of content and the size of the plot on which the house is located.
Why is the WOZ value alone not enough?
The municipality in which the house is located determines the WOZ value of the house. This is not done by means of an appraisal. This is done on the basis of estimates. That is the reason that a WOZ value is not decisive for the sales value of a house.
Value determination by external appraiser
Even if the value of the house has already been estimated by the selling party's broker, this is not leading for the bank to obtain a mortgage. The selling broker is not objective. A purchasing broker is also not seen as independent. That is why an independent appraiser must determine the value of a house.
What if the appraisal value differs from the purchase value?
If the appraised value is higher than the purchase price, getting a mortgage is not a problem. Is it the other way around? Then it can be a problem. The maximum mortgage you can get depends on the actual value of the house. The house is the bank's collateral for the loan. As soon as you can no longer pay the monthly payments, the bank can sell the collateral (your house). If the appraised value of the house is too low, the bank runs a financial risk. That is why an appraised value that is too low can prevent you from getting a mortgage. That is why we warn you to be careful about overbidding on a house you buy.
Want to know more about valuations?
Would you like to know more about valuing a home for sale? Please feel free to contact us by calling 010 452 66 66 or sending an email to info@stadenland.nl . You can also fill out the contact form.
